Question: Given the following cash flows for two mutually exclusive projects, and a required rate of return of 12%, what is the EAA for Project A?
Given the following cash flows for two mutually exclusive projects, and a required rate of return of 12%, what is the EAA for Project A?
| Year | Project A | Project B |
| 0 | -580,000 | -580,000 |
| 1 | 290,000 | 130,000 |
| 2 | 290,000 | 130,000 |
| 3 | 150,000 | 230,000 |
| 4 | 150,000 | 230,000 |
| 5 |
| 230,000 |
| 6 |
| 115,000 |
Given the following cash flows for two mutually exclusive projects, and a required rate of return of 12%, what is the EAA for Project A?
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